New oil well near M-52

Savoy Energy Limited Partnership of Traverse City has begun drilling an oil well on property owned by the city of Adrian on M-52 a short distance south of Howell Highway.

The well, rigging for which is easily seen from the highway, is the second that the company has drilled on city property, city administrator Dane Nelson said.

The company drilled another well in Heritage Park. That well has not produced any oil so far, Nelson said.

A check Tuesday in Heritage Park revealed that the rigging had been removed from that well.

Workers began drilling the new well Friday, Nelson said. The new well is on land commonly referred to as Witt farm.

Savoy has leases on about 1,184 acres of city-owned property for oil exploration. Savoy will pay the city royalties on any oil found under that land. Savoy also agreed to pay the city about $328,000 as a “bonus” to lease the property.

An attempt Tuesday afternoon to reach Savoy president Bill Sperry to ask about future drilling on city-owned land was unsuccessful.

Savoy began exploring for oil in the Adrian area in the fall of 2009. The company has drilled more than a dozen wells in Adrian Township.